Property Tax Arrears Program

What are the General Taxation Area (GTA) and Municipal Taxation Area (MTA)?

The General Taxation Area (GTA) refers to geographic areas of the NWT that are not within the Municipal Taxation Areas (Yellowknife, Fort Simpson, Inuvik, Hay River, Fort Smith and Norman Wells). GTA residents are billed directly from the GNWT for their property taxes. MTA residents pay their property taxes to the municipalities where their property is located.

How does the Property Tax Arrears Program (PTAP) work?

Residents who enter into a payment agreement with the GNWT have their interest reduced each year until they have paid the principal on their property tax arrears in full.

For example:

• If you enter into a five year payment agreement, your outstanding interest will be reduced by 20% each year.
• If you enter into a two year payment agreement, your outstanding interest will be reduced by 50% each year.

How do you determine what are my property tax principal arrears and what portion is interest arrears?

Your property is taxed each year. This annual amount is the principal. If you do not pay your property tax in full, you are charged interest on the outstanding amount. This interest is added to the total amount you owe (arrears).

Under PTAP, you may receive assistance on the property tax interest you owe by entering into an agreement to pay the principal you owe.

Are there other benefits to the program?

Entering an agreement and making scheduled payments will update you to a position of good standing with your property. This may allow you to secure a lease on your property if you are an unauthorized user. You may be able to purchase your current leasehold and you may be able to access NWT Housing or other GNWT Programs that were previously not available to you.

I am already making payments, or have recently paid off, my property tax arrears. Does this program apply to me?

If you are already making payments on your account, you may be eligible for an adjustment of 50% of all interest paid since August 1, 2014.  If you have paid off property tax arrears after August 1, 2014, please call 1-800-661-0820, option 7. If your arrears included an interest component you may be eligible for a partial refund related to interest charges. 

Do I have to reside on the property to access PTAP?

You do not need to reside on the property to access PTAP. However, residents who access the Department of Municipal and Community Affairs (MACA) Seniors and Disabled Persons Property Tax Relief Program need to reside on the property to remain eligible. For more information on the MACA Seniors and Disabled Persons Property Tax Relief Program, contact your MACA regional office.

Are Commercial properties eligible for this program?

No, commercial properties are not eligible.

I know someone who received a letter about this program. I did not. Does this mean I am not eligible?

Letters were sent to the last known address on file. If you have moved, your letter may have been sent to the wrong address. If you would like to find out if you are eligible for PTAP, please call 1-800-661-0820, option 7—even if you did not receive a letter. You can also visit your local Lands Officer or Government Service Officer (GSO) to find out more. 

I received a letter but I no longer have this property. How do I change the registered property holder name on the property?

The proper legal process needs to be followed to change the registered owners, including the responsibility of paying the arrears.  Property ownership cannot be changed in this program without going through the normal legal process.

I am already participating in the MACA Seniors and Disabled Persons Property Tax Relief Program. Am I eligible for PTAP? Can I apply to both?

PTAP is different from the MACA Seniors and Disabled Persons Property Tax Relief Program. If you are a senior or disabled person that is behind on their property tax, you can apply for additional assistance through PTAP. Seniors and disabled persons only need to complete Section 1 and Section 4 of the application form.

PLEASE NOTE that PTAP and MACA Seniors and Disabled Persons Property Tax Relief are different programs. You must apply each year to continue to receive MACA Seniors and Disabled Persons Property Tax Relief

What can I use to determine Gross Household income?

You can use a letter from your employer, your T4, your annual CRA income tax assessment, or any other documents that would support the combined household income.

Who is included in the Gross household income?

Gross household income is calculated by adding the income of the property holder and their spouse or common law partner. If there are multiple property holders listed, all of their incomes are included—even if they do not reside at the property.

What if I have no block number in the property description?

In this case you may leave the section blank on the application form.

What if I have more than one eligible property?

You need to enter all eligible residential and recreational properties you own on one application form. 

What if the property owner is deceased and this is an estate?

The estate executor should fill out the Section 1 and 4 of the application and submit it.

When do I start making my payments?

You will be notified when payments will start after you sign a payment agreement.

What method of payment does the GNWT accept?

We will accept cheques, money order, debit card, VISA, MasterCard, online banking, and automatic debits through your online banking.

Can I repay my arrears faster than what is in the agreement?

Yes. The payment agreement outlines the minimum amount you are required to repay each month. The GNWT will accept bi-weekly payments and lump sum payments if you want to repay your property tax more quickly.

Will there be interest charged while I maintain my payment agreement?

No interest will be charged as long as you meet your obligation under the payment plan.

Will I still get notices and statements?

Yes, you will continue to receive statements and notices of your arrears.

Will there be garnishees when I am in the payment agreement?

This is a voluntary program designed to bring your account into good standing with the GNWT. As long as you continue to make your payments and do not breach the agreement, your account will be in good standing.   No further collection action on property taxes or property leases will occur while you are in good standing.

What if I still can’t afford the payment options under PTAP?

If you cannot afford to any of the options listed in the application form, you will need to complete section 3 of the application.

If I am in the program will my name still appear in the newspaper listing of Property Tax Arrears that is published every June?

Once the agreements are entered into, your name will no longer appear on the arrears list posted in the newspaper, as long as you continue to make your payments.

What happens if I default on my payment agreement and stop making payments?

You must remain in good standing to receive interest assistance. Defaulting on the agreement will put your account back into arrears and you will be responsible for the principal and remaining interest.

What will happen when my property tax or property lease increases in the future?

The legal agreement that will be entered into for the PTAP program will allow for increased payments if a significant change occurs in your property’s assessment. The payment agreement will be set to manage smaller increases by adding one or more payments to the end of the agreement to address small increases that may have occurred over the period of the agreement.